According to VAO news, Chinese authorities is holding high-level political meetings in Beijing in the last week of October that are expected to unveil details about the country’s next five-year plan, which comes as the Chinese economy is slipping into a so-called “new normal” of slower economic growth.
According to official data released this week, China’s economy grew at 6.9 percent in the third quarter, its slowest pace in six years. The fact that the indicator coincidentally met the government’s target of a “flexible 7 percent” has again fueled skepticism about the reliability of official economic indicators in China.
Signs of structural changes are evident in the Chinese economy. Official statistics indicated agriculture and manufacturing grew at 3.8 and 6 percent respectively, underperforming the services sector’s 8.4 percent. And the pressures on manufacturing in China, in particular, are mounting, say industry watchers.
No doubt, China is not only slowly moving up the value chain but also is transitioning from an export-oriented economy to a domestic consumption-driven one. But can China’s consumption be enough to drive its future economy?
The answer may depend on whether China can succeed in doubling its GDP per capita in 2020 from the 2010 level while adjusting to a lowered growth target of 6.5 percent. These are among the goals that are expected to be included in the country’s 13th five-year plan, according to Chinese language media reports.
Sources say that the main goal of the next five-year plan will be to seek a “moderately well-off society,” with attention to service-sector growth, agricultural innovation, and establishment of regional zones for promotion of efficient urban and rural development.
Many large opportunities will also be present for foreign investments.
Soucre: http://www.voanews.com/content/china-faces-challenges-thirteenth-five-year-plan/3017517.html